JLL Hotels & Hospitality have sold the Adelphi Hotel in Melbourne, in conjunction with CVA Property Consultants .
The iconic Adelphi Hotel on Flinders Lane has been acquired by a private investment group Virtical Pty Ltd (formerly known as Core Asset Development Pty Ltd) in a deal worth a reported $25 million.
The transaction was negotiated by JLL Hotels & Hospitality’s Peter Harper and Nick MacFie following a public Expressions of Interest sale campaign, in conjunction with CVA’s Charles Cini and Ian Angelico.
Located at 187 Flinders Lane in the thriving and world-renowned entertainment precinct of Melbourne, Adelphi Hotel features 34 bespoke guest rooms, rooftop pool and bar/events venue, cocktail bar, boardroom as well as a lower ground restaurant leased to NOMAD Melbourne. Vacant possession of hotel management was offered as part of the sale.
Since opening, Adelphi Hotel has benefitted from an exceptional reputation having won Victoria’s Best Boutique Hotel Award four times. The property was sold by private investors Roger and Simon Ongarato and Ozzie Kheir.
Managing Director of Virtical, Mr Mark Toma, “We believe we can add great value to this unique property through a renovations and expansion of its facilities.
The new owners have a vision for the Adelphi of not only featuring superb accommodation but becoming a CBD focal point with fine food and a cocktail bar”, he added.
Group Development Director Mr John Palasty said “We are at Virtical currently working with architects and designers to renovate the hotel in its original art deco style, echoing the company’s work with its Hotel Australasia in Eden, which has been restored to win an award from the National Trust last month”.
“Throughout the on-market sales process for Adelphi, JLL fielded over 150 enquiries, 21 inspections and received around 12 expressions of interest. Following a highly competitive short-listed second-round bid process, the transaction was concluded in just two weeks”, said Nick MacFie, Vice President – Investment Sales.
“Quality Melbourne hotels remain very highly sought after by domestic and international investors. The Melbourne hotel trading market has now achieved a full RevPAR recovery and is expected to continue this growth trend, driven by its historical ability to absorb new supply, ever evolving calendar of world class events, infrastructure investment and population growth”, added Peter Harper, Managing Director and Head of Investment Sales – Australasia.
This transaction follows several other major hotel deals that JLL have concluded in the past 12 months including Bayview Eden and Hotel Lindrum, with further sales to be announced in the coming weeks.